If There Are No Fixed Costs and Variable Costs Are

question 45

Multiple Choice

If there are no fixed costs and variable costs are constant at $1.00 per unit over the relevant range of output,what will the average total cost be after 1 unit of output is produced?

• A)$0
• B)$1
• C)$1.50
• D)$2

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Definitions:

Net Taxes

The total taxes paid to the government minus any government transfers or subsidies received.

Taxes

Compulsory financial charges imposed by a government on its citizens to fund public expenditures.

Transfer Payments

Transactions where no goods or services are received in return, such as government benefits, grants, or subsidies.

Economic System

An organized way in which a state or nation allocates its resources and apportions goods and services in the national community.